What is your debt/net income ratio

[feh]

Zero. My wife and I have no debt.

[SnoopyCool]

37% of Net (I rolled my escrow for taxes and property insurance into that number - don't know if that's right or not). It includes a student loan, mortgage, and car payment.

I keep mulling over becoming Gazelle Intense.

[tripods68]

People in the mid 30s (Jinco, myself, FoolAZ, SnoopCool) have plenty of time to improve our numbers next years end

DW and I expect another raise: 5% in January and 5% June of next year

[ceejay74]

56% of net, 38% of gross.

Obviously I'm on accelerated debt payoff. Minimum payments would be less.

[MYOM]

Debt is a serious no-no at our house. Borrowing has never an option. I have never paid one cent in debt service other than a home mortgage, which was paid in full 15 years ago.

Dan Clemons, author and retired Certified Financial Planner

[Seeker]

Debt is a serious no-no at our house. Borrowing has never an option. I have never paid one cent in debt service other than a home mortgage, which was paid in full 15 years ago.

Dan Clemons, author and retired Certified Financial Planner

Well Dan, I'm not sure how the future Doctors of America will ever become doctors without taking on some debt.... nor lawyers, nor any of the professions that require a good deal of advanced education and committment.

Would you as a Dad support your child wanting to become a doctor? Do you think that every parent could afford this?

What happens if your SO becomes sick enough to require hospitalization? Have you ever experianced financial ruin because of anything totally beyond your control?

I know a woman who had a child delivered early because the fetus embedded itself into the fallopian tube instead. Both she and her husband have significant debt in the form of medical bills to be paid; luckily the child is fine.... but ultimately, they probably will never be able to buy a home.

Not everyone has a choice.

[disneysteve]

Debt is a serious no-no at our house. Borrowing has never an option. I have never paid one cent in debt service other than a home mortgage, which was paid in full 15 years ago.

Well Dan, I'm not sure how the future Doctors of America will ever become doctors without taking on some debt.... nor lawyers, nor any of the professions that require a good deal of advanced education and committment.

Not everyone has a choice.

Dan, I have to agree with Seeker. Not all debt is bad or avoidable. I am a doctor. I certainly wouldn't have become one if I had to pay for medical school out of pocket. I think the money I borrowed for my education was well worth it considering where it has gotten me in life.

Without debt, I also wouldn't have my current car, which I've had for over 10 years. At the time that I bought it, I didn't have the means to pay cash for a good car so I took a loan that I paid off long ago. Was that a bad deal? I don't think so.

[Snodog]

7% of net , mortgage only

I'de rather chew off my arm than go into more debt. But I agree that sometimes things happen and debt is unavoidable.

[tripods68]

Maybe MYOM comes from a wealthy background?

[kimiko]

Zero.

No house = no mortgage
Old used car = no card note
Community and state college, plus part time jobs = no student loan
Credit cards are for daily expenses and get pay off every month = none.

I live with my family and they're in the same situation. No debt.

[pearlieq]

12.8% of our combined net--just the mortgage.

I have no regrets at all about the student loan debt I took out. College may have been possible without, but it would have taken significantly longer and would have involved staying in a home situation I really needed to leave. The lost income and investment time on those extra years would have easily negated the small amount of interest I paid on student loans.

I also don't get the moral relativism that some people have over debt. I don't know how many times I have heard "Debt is wrong/bad/stupid, except for the kind I had, of course."

[disneysteve]

I also don't get the moral relativism that some people have over debt. I don't know how many times I have heard "Debt is wrong/bad/stupid, except for the kind I had, of course."

I agree. The "all debt is bad" comments annoy me as much as the "credit cards are evil" ones. Debt is just a financial tool. Used properly, it can help you a great deal. Same goes for credit cards.

[scfr]

Well, the easy answer is zero, but technically I guess we do have debt because:
- We use credit cards. Even tho' we pay them in full each month, the money we have charged we technically owe until it's paid off.
- We pay estimated taxes, which I guess is debt ... "accrued taxes due" or whatever the proper accounting term is.
- Same thing could be said for our electric bill. I currently owe the electric company for however many kwh I have used since I last paid.

Sorry! I'm overthinking again.
Let's just say my debt is zero, shall we?

[disneysteve]

scfr - That's like saying that when I eat in a restaurant, I have debt because I've already consumed the food but haven't paid the bill yet.

[scfr]

scfr - That's like saying that when I eat in a restaurant, I have debt because I've already consumed the food but haven't paid the bill yet.

Good one! LOL